Chinese automakers set to debut new EV models in Munich

Chinese automakers including BYD, Xpeng, and Leapmotor are set to debut new hybrid and EV models at the IAA Mobility 2025 show in Munich next week as they expand further into Europe.

Their push comes amid a price war in China’s EV market and ongoing EU tariffs on Chinese imports.

Chinese brands accounted for 9.9% of Europe’s EV sales and 5.3% of the overall auto market in July, according to Dataforce.

BYD, now outselling Tesla in Europe, is preparing to open factories in Hungary and Turkey, and will launch its Seal 06 DM-i Touring station wagon at the event.

Xpeng will showcase an updated P7 sedan, while Leapmotor will introduce the B05 hatchback, competing with established European models.

Chery will present its Omoda and Jaecoo brands, adding new EVs and plug-in hybrids to the German market.

Chinese suppliers and tech firms like CATL, Hesai, DeepRoute.ai, and Momenta will also attend, highlighting the country’s expanding automotive ecosystem in Europe.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Chinese automakers are bypassing trade barriers through strategic production localization

Despite EU tariffs reaching up to 47.6% on Chinese EVs, Chinese manufacturers are maintaining growth by establishing European production facilities2.

BYD is setting up factories in Hungary and Turkey specifically to avoid these tariffs, while Stellantis plans to build EVs with Chinese partner Leapmotor in Spain1.

This production localization strategy reflects earlier actions by other global automakers who established European manufacturing to access the single market without import duties.

The approach shows how Chinese companies are adapting their expansion strategies in real-time, choosing long-term market access over short-term export profits.

Chinese brands still captured 9.9% of Europe’s EV sales in July and maintained over 5% of the overall auto market for three consecutive months, showing that tariff barriers haven’t derailed their European ambitions1.